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The Indonesian Oil Palm Research Institute said on Monday (19/12) it expects 2016 palm oil production to be 34.71 million tonnes, down 2.26 percent from 35.51 million tonnes last year due to dry conditions related to an El Nino weather pattern.

“El Nino in the second half of 2015 caused very low production in the first half of 2016, but there has been a recovery in the second half of 2016,” Hasril Hasan Siregar, director of the state research firm, said in a statement.

The research firm said it expected better growing conditions in the latter part of 2016 and more typical weather in 2017 to boost production next year, he said.